Own more than 1 property all of which are in my name (no mortgages) and another which was sold but I am providing owner financing with the buyer having signed a long term mortgage note. I also have various reward checking accounts at different banks in different states all earning interest. Want to know how I can legally protect them from judgments or collections that may arise from creditors such as Medical Providers, Doctor's, Hospitals, etc. Due to not having a regular income I don't have any health insurance and should I need to visit a hospital I assume they would send a balance bill and when their collection department finds out I own property try to place a lien on the property. Any advice on how to negate and reduce this exposure short of purchasing an expensive Obamacare Health Insurance Policy which wouldn't provide much in terms of coverage anyway?
Supreme Court Rules That Creditors May Not Seize IRA Assets in Bankruptcy Proceedings In a huge victory for managed and self-directed IRA owners everywhere, the U.S. Supreme Court ruled last week that IRAs receive Federal Creditor Protection. This means that creditors cannot seize assets in an Individual Retirement Account. The Supreme Court ruled unanimously that IRAs should join pensions, 401(k)s, Social Security and other benefits tied to age, illness or disability, that are afforded protection under federal bankruptcy law and thus shielded from creditors in bankruptcy proceedings. Until recently, IRA protection was covered by state laws, which varied to a great extent on coverage provided. This ambiguity led to a great deal of confusion and uncertainty for IRA owners wondering how their assets were protected from creditors. The case before the Supreme Court was heard because of a lower court ruling against IRA protection based on the faulty notion that since investors can make IRA withdrawals at any time, IRAs are similar to savings accounts, which are unprotected from creditors under bankruptcy law. Justice Clarence Thomas, writing for the Court, said a bankrupt Arkansas couple was entitled to keep more than $55,000 in retirement savings from creditors. He reasoned that IRAs are benefits tied to a person's age under the federal statute because a tax penalty is imposed if a person makes withdrawals before age 60. Interestingly enough, the court did not choose to address the topic of whether very large IRA accounts would be protected under the federal bankruptcy code. The code has a provision stating that certain assets (such as retirement plans) that are deemed to be "reasonably necessary" to support a debtor and his/her family are protected from creditors. The uncertainty of what is "reasonably necessary" means some assets in extremely large IRAs might not be protected. Having said that, this issue will surely be brought to the court's attention in the future. However, for the time being, the vast majority of Americans will not have to worry about creditor attachment of their IRAs. The ruling comes at a time when IRA assets are set to reach the $3 TRILLION mark and, for many Americans, the IRA has become their most significant retirement asset. Having the same protection in bankruptcy that workers receive for their 401(k) plans and company pensions shields a nest egg relied upon by millions of Americans and provides another layer of financial protection. View a copy of the Supreme Court ruling.
bobbosaurus said: Can't afford the premiums on the medical insurance. Not to mention they wouldn't kick in until the deductible was met. Seems like the best thing is to go to paying for everything with cash...
How much are the premiums and why can't you afford it?
If you don't make much you can qualify for tax credits or even Medicaid.
bobbosaurus said: You cant just move a property into an IRA
How would I move a property into a class where it couldn't be attached somehow to a judgment or collection? by spending more money on lawyers and accountants to hide everything using loopholes than it would cost to have health insurance for 15 years.
yeah, you are leaving a bunch out and trying to sound smarter, and more organized than you are. W/ that level of income, you'll pay very little for insurance including the credit you get because of your income.
On top of that, anything you can do to protect yourself -- can also be un-done by foolish actions. Don't underestimate your ability to do stupid things that take away the protections you put in place on your assets. (i.e. piercing the corporate veil)
Thought about the possibility of moving but there isn't a place I could think of that I would want to move to. Why is it that we as a country can provide free stuff to illegals in this country all the while making it impossible for US Citizens to live without taking undue risks?
bobbosaurus said: How about getting a job? Maybe you could find one that offers health insurance.
Girlfriend offered to get married so that I can get insurance but she has alot of unsecured debt and student loans, etc. and I am not sure if the collection agencies would than try and come after me?? Dont know FL law and your specific GF's employer. But some provide coverage to "domestic partner". IOW, you dont have to be married to get coverage through GF. Of course check with her employer to see what their benefits policy is.
Alternatives are short term insurance with high deductible or a health care sharing ministry. You might get those for $100-200 / month range. Or you can just roll the dice and hope you never get sick or injured. But as you age the chances of a 5 or 6 figure medical bill wont' be trivial.
Alternatives are short term insurance with high deductible or a health care sharing ministry.
Any way to screen these mutual insurance companies for a lack of a better description to see what the cost and what are the benefits of belonging? Anybody belong to one that would allow someone in Florida to join?
bobbosaurus said: Any advice on how to negate and reduce this exposure short of purchasing an expensive Obamacare Health Insurance Policy which wouldn't provide much in terms of coverage anyway?MedicAID expansion
Otherwise, seconding the healthcare ministry. Should be sub-$100/mo and enables you to avoid the shared responsibility payment. There are only like 4 of them in operation, and I know at least one was involved in major fraud about 10 years ago, but still, just like regular health insurance, you pays your money and you takes your chances.
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